Psilocybin-focused mental health company Compass Pathways (Nasdaq:CMPS) has seen its share price steadily decline since late last year. In early November, 2021, its share price flirted with reaching $50 per share. On July 18, CMPS shares closed at $13.02.
Today, however, the shares were up 6% in mid-day trading, hovering around $13.80, after the company announced it would install a new CEO on August 1.
Kabir Nath will replace the company’s current CEO and chairman, who will assume the role of executive chairman until the end of the year.
“I am grateful for this opportunity and excited to get to know all our teams here at Compass Pathways as well as the members of our community,” Nath wrote on LinkedIn, “This is an exciting time to be joining Compass and I can’t wait to see what we will accomplish together.”
Nath is a veteran of the life sciences industry, having held senior roles at Smith & Nephew, Bristol-Myers Squibb and Otsuka Pharmaceutical Companies.
In a role of president and CEO of Otsuka’s North America pharmaceutical business, Nath led the development of drugs for mental health conditions.
“Working alongside our talented leadership team, [Nath] will leverage his extensive background in leading the commercialization of innovative therapies to bring COMP360 psilocybin therapy to the large number of patients who are not currently being helped by existing treatments,” said George Goldsmith, Compass Pathways’ departing CEO in a news release.
In 2016, Goldsmith co-founded Compass Pathways with Ekaterina Malievskaia, the company’s chief innovation officer.
“I had the good fortune of being able to establish a strong working relationship with George, his co-founder Ekaterina Malievskaia and some of the Compass leadership team and board members through Otsuka’s investment in Compass’ Series B investment round,” Nath said in a press release. “I have seen first-hand how their passion for this company continues shaping the future of mental health care. I am grateful for this opportunity and excited to execute Compass’ vision, bringing its work to the next level to achieve better health outcomes for patients.”